New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-05-26
TESTIMONY OF FREDERICK L. AMES.
SAYING THAT MR.. GOULD WAS AG1TATED.

THE PACIFIC RAILWAY COMMITTEE IN BosTON-EX-
PLANNING THE KANSAS PACIFIC PURCHASE
Boston, May 25.-The second session OF the Pacific
Railway Investigating Commission in the matter OF
the Union Pacific Railroad held at.the directors
otics of the Union Pacific company this afternoon.
All the members OF the commission were present H.
Ellery Anderson, of New-York, having arrived tina
morning. Frederick L. Ames was the brst witness
called He testified that he was formerly q stock-
holder In the Union Pacific Railroad He was familiar
with the relations of this road and the Kansas Pacific
road prior to 1877. Said he;
al personally attended to the affairs Of the road
under the direction OF my fsbor, Oliver Ames III, Inc
first dividend OF the road paid IN 1870 or 1879:
do not remember the rate paid. was some Shst
familiar with the condition OF the Kansas racine.
did not think the stock Of much value in s|G Jay
Iould was instrumental In buying up the Kansas
Pacific securities IN 1876. ! understood that he
owned large amount OF the funding bonds and IN
Ts,oectye interest. of any OF the gentlemen inter
ested were owned no securities that entered into
that pool. I received two certificates for So0:OUO
each I have not these In my possession now Ihey
were turned over TO somebody. These certificates
were probably issred to every member oil the poo.
think paid 100000 to the Farmers Loan and Trust
Company" , ...
Mr.. Anderson-Have you been able to find those
certificates, Mr.. Mink =
Controller Mink-They are not in possession, sir.
Mr. Anderson-It is very strange that we cannot get
any clew to those certificates.
Mr. Ames-I do not remember that ever CON
tributed the $3S3.OOO funding bonds namea ID tne
was limited to the advancement OF the $lOooOo' ne
pooling rates and mortgage rates we're Identical. l
was a director in the Kansas Pacihc road la lo'v
cannot explain why bonds we're issued to persons
having claims against the road at rate which wOuld
exaggerste it's indebtedness more than $1,OOO, OoO
exchanged my bonds for Kansas Pacific bonds.
do not remember that in 1850 $2950.OJO OF pre-
terred stock was issued to jay Gould at TO- when the
bonds we're worth 04. do not know OF any other
transaction of the kind.
do not know how the KaIsss Pacific road came to
be indebted TO Jay Gould for 81 100000 at this time
All the directors in favor OF the consolidation
except Jay Gould He unwilling to accede to any
such terms as we thought VIC were entitled TO- ana
seemed much agitated at the course we had taken
The final contamination was reached at MT. Gouias
house do not remember that We would not let Mr.
Gould leave the room until he had signed the paper
The paper was signed by all present The basn OF the
consolidation was $50,0)C 900.
Mr. Ames remembere,: that an agreement between
the Union Pacific, the Colorado Central the Denver
Pacific and the OF the Kansas Pacific dated
juno, 1878, was reported to the direction OF the
Kansas Pacific for approval The Union Paelho
received 72s5S per cent of the total gross earnings
of the pool tho Omaha Bridge 2776 per cent, the
Colorado Central 4.o73, aud the Kansas paciho
1858. This pool remained In operation until the
consolidation. He did not remember meeting in
July. 1879 at which II was agreed 10 make note to
Jay Gould for $29o,371 with deposit OF Kansas
Pacific consos security the proceeds to be used Tor
the payment OF overdue coupons and interest GER
tifcates, but very likely the agreement was made
Nor did he remember the meeting of October y 1871,
when II voted 10 issue stock at par for certain
securities. Mr.. Ames sso said that the directors OF
the Union Pacific were large, controlled iu signing
the agreement read at the forenoon session by the fact
that they ne cornered by jay Gould.
think has resulted favorably for the Union Pacific,
and would not take back the action II could made
nothing by the consolidation did not sell Kansas
Pacific stock, but hold II now. Mr. Gould made about
$3500,OO0.
In report of President Adams's testimony yester-
day an erroneous statement was credited 70 him.
His statement was that the company would willingly
pay $500,000 more than II is paying under the re-
aui ements OF the Thurman Act II IL could be paid in
lnu, nd na
questions constantly arising out OF the construction
OF the term net earnings."